End of energy subsidies + up coming sanctions = End of IRI

As many of you know, most energy related products and services in Iran have been heavily subsidized for the past 30 years.  There were subsidies during the time of the Shah but the extent became much more significant under the current regime. For obvious reason of keeping the economically less fortunate quiet.

Due to Iran’s very fragile current economic condition the government does not have a choice but to end or drastically reduce these subsides.  And they have.  Subsidized products and services for example regular gasoline, diesel gas, natural gas, electricity and even water will no longer be cheap.

Friends of ours in Iran are saying that they expect their gas and electricity costs to rise 100-300%.  The situation is so bad that its effecting sales of cars with larger than 1600cc engines, rents, industrial goods and much more.

This is very good news for the long term.  In the short term, Iranians living in Iran will suffer.  No doubt about that.

But this is THE right time for some economic sanctions to go into effect; sanctions on imported gasoline will be a good start.

While its true that no other government on the face of the earth, especially U.S., U.K., China and Russia give a damn about Iran or Iranians, and we should not count on or trust any foreign government with Iran’s future, IMHO I think long term its best for Iran to get rid of the current regime and pay a cost now instead of putting up with it another 10, 20 or 30 years.

The only thing is that protests and strikes need to continue so pressure remains relentless.  


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